The U.S. Department of Labor is advising states to take advantage of federal government Workforce Innovation and Opportunity Act grants to fund their efforts to improve artificial intelligence literacy and training across state workforces through state and local workforce development systems.
The Labor Department issued that guidance on Aug. 26.
Those grants are available to states under the Workforce Innovation and Opportunity Act approved by Congress in 2014. The law is administered by the Labor Department’s Employment and Training Administration at the federal government level, and at the state and local levels through Workforce Development Boards and American Job Centers.
In addition to those grant funding sources, the Labor Department is also encouraging states to “use their governor’s reserve funds to integrate AI learning opportunities into programming.”
The Labor Department’s guidance to states aims to put into action the aims of President Donald Trump’s Advancing Artificial Intelligence Education for American Youth executive order issued in April 2025.
“President Trump set out with a goal to Make America Skilled Again by providing more flexibility to state and local governments, empowering them to utilize federal resources more efficiently to prepare workers for the in-demand, mortgage-paying jobs of the future,” said Labor Secretary Lori Chavez-DeRemer.
“By sending out this new guidance, the Department of Labor is fulfilling the President’s goal and acting on our commitment to put the American worker first,” she said.
Deputy Secretary of Labor Keith Sonderling added, “As AI continues to reshape the labor market, we are seeing entire new categories of jobs be created, many of which are high-paying and no longer require a four-year degree.”
“We believe that AI literacy is the gateway to opportunity in an AI-driven economy, and this guidance will ensure that more Americans have access to the foundational AI skills they need to succeed,” he said.
Earlier this month, the Trump administration set forth policy plans for a sweeping overhaul of the American workforce system centered on developing AI skills, rapid retraining, and breaking away from the “college-for-all” model it says has failed.